Delta Reports Q2 Loss

[WWEfan]

http://biz.yahoo.com/bizj/050721/1137061.html?.v=3

Hey, at least we are improving

 

[WWEfan]

It appears that most of this loss is blamed on the rising cost of fuel. I blame it on the lack of rising ticket prices/fuel surcharges.

 

[tuna pimp]

It appears that most of this loss is blamed on the rising cost of fuel. I blame it on the lack of rising ticket prices/fuel surcharges.

Of the bigs that reported so far for Q2 DL's RASM was 9.58 vs. 9.22 & 9.52 for AA & CO respectively. AA & CO both saw greater increases in RASM yet are still lower than DL.

I'm not sure there was quite as much opportunity for DL to raise fares as at these other carriers. Plus, DL tends to have to fight low fare carriers in ATL and the FLA-NE corridor a bit more agressively than those two other airlines.

Still, it really bugs me to see other majors turn a Q2 profit vs. a significant loss for DL even if we are making some headway in terms of getting closer to profitability.

 

[737 Pylt]

Amazing, the airline with the largest rj fleet has the largest losses!

737

 

[AAflyer]

Of the bigs that reported so far for Q2 DL's RASM was 9.58 vs. 9.22 & 9.52 for AA & CO respectively. AA & CO both saw greater increases in RASM yet are still lower than DL.

I'm not sure there was quite as much opportunity for DL to raise fares as at these other carriers. Plus, DL tends to have to fight low fare carriers in ATL and the FLA-NE corridor a bit more agressively than those two other airlines.

Still, it really bugs me to see other majors turn a Q2 profit vs. a significant loss for DL even if we are making some headway in terms of getting closer to profitability.

We have busted our @ss at this company the past 4 years since 9/11, we had
a corrupt CEO take us to the edge of bankcruptcy, we had union sell us a sh1t contract that was shoved down our throat, we had our pay cut from industry lagging rates (unlike DAL and UAL cuts from industry leading), we have as many pilots on furlough as some airlines have on their entire seniority list. AMR turned a profit due to the cuts and hard work of labor.
We have earned this, and tastes pretty good, sorry it bugs you.

AA

 

[tuna pimp]

We have busted our @ss at this company the past 4 years since 9/11, we had
a corrupt CEO take us to the edge of bankcruptcy, we had union sell us a sh1t contract that was shoved down our throat, we had our pay cut from industry lagging rates (unlike DAL and UAL cuts from industry leading), we have as many pilots on furlough as some airlines have on their entire seniority list. AMR turned a profit due to the cuts and hard work of labor.
We have earned this, and tastes pretty good, sorry it bugs you.

AA

Sure, cause, it's all been martinis and cocktail parties over here at DL. I certainly don't begrudge the good folks over at AA a pat on the back over a solid quarterly showing but DL's had a ton of crap to deal with as well. We bust our butts also, and had to give up salary cuts, benefit cuts, hub closures, massive layoffs & furloughs, longer hours, more work, crappy management decisions etc as well.

So yeah, i would like to see DL kick out a few black quarters as well. Sorry that you can't understand that.

 

[AA717driver]

AAflyer--I don't think he was criticizing AA and CAL, he was bemoaning the fact that DL is pulling more revenue and still posting a big loss.TC

P.S.--APA held on to the A plan. That's a MAJOR victory for Navtive AA'ers. You want higher pay rates, go to a Defined Contribution plan like every LCC out there and your hourly pay rates will take a big jump. Pref bidding would be a major QOL improvement--for those still on the property. It would condemn the current furloughees to many more years on the street. APA put together the least painful POS contract they could with the info they had at the time. And, no I'm not an APA lover, I've just seen my share of concessionary contracts. Take care.

 

[AAflyer]

AAflyer--I don't think he was criticizing AA and CAL, he was bemoaning the fact that DL is pulling more revenue and still posting a big loss.TC

P.S.--APA held on to the A plan. That's a MAJOR victory for Navtive AA'ers. You want higher pay rates, go to a Defined Contribution plan like every LCC out there and your hourly pay rates will take a big jump. Pref bidding would be a major QOL improvement--for those still on the property. It would condemn the current furloughees to many more years on the street. APA put together the least painful POS contract they could with the info they had at the time. And, no I'm not an APA lover, I've just seen my share of concessionary contracts. Take care.

TC
I think I read his message wrong, and Tuna pimp I apoligize, it has been a long road.

As for the MAJOR victory, you know as well as I do it is not guranteed. AA can continue to pay lower wages and hold the A and B plan carrot in front of us, however with many years left to go I will count on that as much as SS.
The senior guys are protecting theirs, and will do it at the expense of anyone. Hope all is well, take care.

AA

 

[tuna pimp]

No problem.

 

[jehtplane]

Amazing, the airline with the largest rj fleet has the largest losses!

737

Oh boy here we go again, it is all the rj's fault. GET A LIFE!!!!!!!!!!!!!!!!!!!!!

 

[ebaybob]

Adding fuel to the fire...

This morning's WSJ...about Delta trying to stay out of bankruptcy...interesting...

"Mr. Grinstein continues to pursue new financing options that could buy Delta additional time, including talks with a consortium of lenders led by General Electric Co.'s commercial lending arm and American Express Co., and intensifying discussions with SkyWest Inc. to acquire Delta's Atlantic Southeast regional carrier."

 

[737 Pylt]

Oh boy here we go again, it is all the rj's fault. GET A LIFE!!!!!!!!!!!!!!!!!!!!!

How about get bent Mr. I'd fly an rj if it paid 6 figures! Its not the fault of the rj, just the way mgmt chooses to use them!

737

 

[ohplease!]

Amazing, the airline with the largest rj fleet has the largest losses!

737

Amazing, the airline with the highest paid, least productive pilots has the largest losses!
Wind check.

 

[tuna pimp]

How about get bent Mr. I'd fly an rj if it paid 6 figures! Its not the fault of the rj, just the way mgmt chooses to use them!

737

Just curious 737pylt...

How would you operate a competative hub in small O&D markets such as CVG & SLC without using RJs extensively?

What sort of a defensive point to point strategy would you employ out of key DL non-hub strength cities such as SAV, JAX, MCO, TPA without using RJs?

How would you provide the sort of nonstop frequencies to second-tier non-hub business markets such as RDU, RIC or CMH needed to compete with CO or AA for large agency contracts in the big cities such as NYC or BOS?

Which aircraft would you use to develop long-skinny routes like ATL-YOW or CVG-COS, for example? Or to try and develop new short-haul markets like ATL-TUP (Tupelo, MS) or ATL-APF (Naples, FL)?

To be fair, where DL management does really stretch the use of the RJ is using them between major business markets. I cringe when I see RJs flying between ATL & DCA or DTW or some other major centers like that.

But by and large I think DL leadership has done a very effective job employing the RJs across our network. And I don't think the bulk of Delta's woes are due to our friends operating under the DCI banner. It's more to do with how our mainline aircraft are allocated (smaller % of int'l flying vs. other majors as well as less transcon than AA/CO/UA) as well as a lag in our continuing efforts to get our unit costs down to where we can compete on a more-or-less even playing field with the LCCs.

 

[brvopilot]

Amazing, the airline with the largest rj fleet has the largest losses!

737

Good thing too, can you imagine how great the losses would have been without all those cheap RJ's and pilots!

 

[fsworld]

Amazing, the airline with the largest rj fleet has the largest losses!

737

Did I miss something? Did Delta start operating RJs? Last I checked ASA and Comair were making a profit...

 

[homerjdispatch]

This morning's WSJ...about Delta trying to stay out of bankruptcy...interesting...

"Mr. Grinstein continues to pursue new financing options that could buy Delta additional time, including talks with a consortium of lenders led by General Electric Co.'s commercial lending arm and American Express Co., and intensifying discussions with SkyWest Inc. to acquire Delta's Atlantic Southeast regional carrier."

I wondered how llong until someone brought up SkyWest buying ASA.

 

[Yank McCobb]

Did I miss something? Did Delta start operating RJs? Last I checked ASA and Comair were making a profit...

Yea. The always popular "but WE (fill in the blank with any of the majors' regional partners) are making money". One of the weakest, lamest arguments out there.

Ever wonder HOW or WHY these companies are making this "so-called profit"? Do some homework next time.

Or see "Fly-I" if you prefer to see how it is NOT possible to make a profit using RJs if YOU are the one footing the entire bill.

 

[fsworld]

Ill get right on that. Either way, Delta does not directly operate RJs.

 

[jehtplane]

Amazing, the airline with the highest paid, least productive pilots has the largest losses!
Wind check.

EXACTLY!!!!!!!!!!!!!!!!!!!!.. Oh and don't forget "how long is the final."